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Where are Bert and Ernie's consumption points located in relation to their PPFs? Where are they located in relation to the points you plotted previously,
- Where are Bert and Ernie's consumption points located in relation to their PPFs? Where are they located in relation to the points you plotted previously, prior to trade, when Bert and Ernie were also consuming 3 heads of lettuce each? What does that tell us about gains from trade?
- Bonus: What does this problem tell us about absolute advantage and gains from trade? In other words, if one individual has an absolute advantage at producing both goods, can they still gain from trade? Why?
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